Lindner Depa launches move against New Doha airport

Doha, September 16, 2013

Lindner Depa Interiors (LDI) today announced that it has filed a Dh900 million ($250 million) international arbitration claim against the New Doha International Airport (NDIA).

Linder Depa is a joint venture company between Depa Limited, one of the world’s leading interior contracting companies, and Germany’s Lindner AG, one of the world’s most experienced international airport interior contractors.

The arbitration proceeding has been commenced in the International Court of Arbitration of the International Chamber of Commerce, Paris, said a statement from Depa.

Mohannad Sweid, group CEO, Depa, said: “Our filing today should come as no surprise. We consider the termination of our contract to have been wholly unfounded and the subsequent lack of response by the New Doha International Airport has left Lindner Depa Interiors with no choice but to seek Dh 900 million in compensation through international arbitration. We have spent significant time and effort over the last nine months to resolve this matter amicably with the NDIA but without success. We must protect the interests of our shareholders by seeking justice and are confident that the tribunal will eventually find in our favour.”

The arbitration proceeding results from the termination of LDI’s contract with NDIA for the complete fit-out of 17 lounges at Doha’s New Hamad Airport, the statement said.

“The contract was cancelled following the announcement on 20 June 2012 that LDI’s performance bond and advance payment guarantee were pulled due to their refusal to accept new, non-favourable contract terms and conditions. These included dropping all extension-of-time claims and related costs incurred as a result of very lengthy delays to our works caused by others and acceleration costs,” the Depa statement claimed.

“As a result of these delays, LDI had not been able to start all of its interior contracting work on site as planned and consequently, would not have been able to meet its original contract completion date,” it said.

“The termination of the contract and the subsequent public comments made against LDI by Mr. Akbar Al Baker, head of the NDIA steering committee and CEO of Qatar Airlines in December 2012 and April 2013 caused significant financial and reputational damage to our company,” the statement said. –TradeArabia News Service